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Last seen in the week of Oct 11 – Oct 17. It didn't make the newest report, so the figures below are from that week.

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Microtrend / Rank 09 / Week of Oct 11 – Oct 17

Papertrade's launch-day exploit: attacker turned $1.28M profit and it's still unresolved

By NSA Intelligence · Report published

fadedpapertrade
Peak / day24tracked accounts
Peak daySunOct 11 · busiest day in the panel
Rest of X / peak day—not measured outside the panel
Cited claims202 dropped by automated checks
Market—no token attached

Attention

Who was talking, day by day

Oct 11 – Oct 17 UTC
Tracked paneldistinct tracked accounts / day
24
10
5
9
10
6
4

What happened

Papertrade (@papertrade_xyz) was deployed to HyperEVM because of builder codes @louisdives said the exploit had NOT been resolved and that anyone with enough capital to move the Hyperliquid price could still repeat the trick from a fresh wallet Papertrade trades price off Hyperliquid ETH best bid/offer at that exact second, so moving the HL book for a few seconds makes papertrade pay

+ 17 more in the evidence register ↓

Why it matters

This is the specific development the most distinct tracked accounts are engaging with this week: not Papertrade generally, but the launch-day exploit and the fact that it was described as unresolved. It frames how the team's mocked "reward the losers" model is read: @oodegen later claimed $6M daily revenue and a #3 DeFi rank outperforming Hyperliquid on the day, while the exploit story says the same price-source edge that makes the model work is also its attack surface.

Observed reaction

mixed

Spread

Where it started and who carried it

First seen
Oct 11, 00:15 UTC by @thenestintern
Accounts
30 tracked · 21 elsewhere on X
Communities
perps trading (9), prediction mkts (5), memecoins solana (4), general ct (4)
Key accounts
@papertrade_xyz, @izebel_eth, @dogetoshi, @whitewhalelabs, @btlrtrades

Explainability

Evidence register

Every claim links to the posts behind it
01

Papertrade (@papertrade_xyz) was deployed to HyperEVM because of builder codes

[1]
02

@louisdives said the exploit had NOT been resolved and that anyone with enough capital to move the Hyperliquid price could still repeat the trick from a fresh wallet

[1]
03

Papertrade trades price off Hyperliquid ETH best bid/offer at that exact second, so moving the HL book for a few seconds makes papertrade pay

[1]
04

Traders lost $18.6M on day one and stakers got $12.57M of it, per @scratcherrrr

[1]
05

Per @scratcherrrr, papertrade went live on HyperEVM with 1000x, no funding, and trades against the house pool

[1]
06

Per @scratcherrrr, day one had $300B volume, $13.89B liquidated and $14.4B volume in the first 10 minutes (a figure in this post was truncated as '$' with no number)

[1]
07

Per @scratcherrrr, $PAPER started at 0 supply, was minted only on losses at 100 tokens per $1 while the pool was under $2M, the pool is already ~$5M so that rate is gone, and 3.17B is in circulation with 94–95% staked because stakers eat ~69% of trader losses

[1]
08

@guru__hl posted that users lost $22M margin so far on papertrade

[1]
09

@igorslat checked the papertrade leaderboard and reported a trader made $1M profit, withdrew everything, and earned 17.6m paper on top, all within 24h

[1]
10

@muddyrc described farming $PAPER by opening equal long and short BTC exposure, with the losing leg minting PAPER based on eligible dollars lost (not leveraged notional) and the winning leg offsetting most of the loss, under Papertrade's 2% win fee and profit haircut

[1]
11

Per @muddyrc's model, a 0.1% BTC move implies ~24.29% fee and a 1% BTC move implies ~13.18% fee

[1]
12

@oodegen said papertrade is generating $6m in daily revenue, ranking #3 across DeFi and outperforming hyperliquid on the day

[1]
13

@oodegen said crypto twitter spent days calling papertrade a ponzi before the numbers

[1]
14

Jupiter Labs launched YOLO with up to 1000x leverage, with simulated positions, payouts depending on pool liquidity, and no mention of rewarding losing traders, per @sssionggg quoted by @oodegen

[1]
15

@oodegen characterised YOLO's launch as papertrade getting vamped and asked who takes the other side when too many traders win at once

[1]
16

@jh0l0w said papertrade is led by a cult-leader founder like Jez, quoted by @igorslat

[1]
17

@0xforecaster described papertrade's growth loop as losing money trading, earning PAPER, then staking it to earn a share of protocol revenue

[1]
18

@flyntyas said papertrade is the best place to gamble on crypto right now compared to memecoins

[1]
19

@thenestintern suggested @Enter_Elysium as an alternative where you can get builder-code benefits with faster speed execution

[1]
20

@thenestintern said traders at high leverage are at 1000x, 420x or 269x on papertrade

[1]

Angles

  • Investigation: is the launch-day $1.28M still reproducible? Walk through the HL book-move vector @louisdives described and whether any fix was shipped after 2026-10-11
  • buckets_mentioned_by_most_accounts

Formats in use

    Risks

    • Do not present the exploit or its unresolved status as confirmed fact — it comes from @btlrtrades and @louisdives only; the protocol has not acknowledged it in this data
    • Launch stats ($18.6M day-one losses, $12.57M to stakers, $300B volume, $22M margin lost, $6M daily revenue) are unverified numbers posted by accounts, not by a market source
    • No price predictions on $PAPER or Hyperliquid-derived books (an amount shown in data was truncated)
    • Do not frame this as the individual attacker being doxxed or targeted

    Observed content

    Most-engaged posts

    6 posts on X
    OO@oodegen139 likes
    crypto twitter spent days calling papertrade a ponzi, dismissing the model and laughing at the idea of rewarding stakers with traders’ losses now it’s generating $6m in daily revenue, ranking #3 across defi and outperforming hyperliquid on the day the funniest part is that the
    Open on X →
    OO@oodegen93 likes
    papertrade getting vamped lmfao jupiter labs just launched YOLO with up to 1000x leverage but positions are simulated, payouts depend on pool liquidity, and there's no mention of rewarding losing traders with tokens. so who's taking the other side? what happens when too many
    Open on X →
    MU@muddyrc88 likes
    How to farm $PAPER in the most efficient way possible Papertrade applies a haircut to winning profits, then charges a 2% win fee So losing trades mint PAPER based on eligible dollars lost - not leveraged notional. One very common farming approach is opening equal long and shor
    Open on X →
    IG@igorslat62 likes
    Checked papertrade leaderboard. Guy mad $1m in profit, withdrew everything and earned 17.6m paper on top And everything within 24h only in crypto paperliquid https://t.co/mxTQnha23Z
    Open on X →
    TH@thenestintern51 likes
    PaperTrade has PMF if it can actually get magnitudes of speed faster @papertrade_xyz was deployed into HyperEVM cause of builder codes, but what if you can get the benefit of builder codes with a faster speed execution somewhere else? i present you @Enter_Elysium https://t.co/
    Open on X →
    GU@guru__hl37 likes
    Users lost $22M margin so far on papertrade. Track it in detail at https://t.co/nxE4z0DxrA https://t.co/JtBERc9Gqm
    Open on X →

    History

    Weeks this story made the report

    1 week
    1. μ9fadedPapertrade's launch-day exploit: attacker turned $1.28M profit and it's still unresolved